Directors - Boustead Holdings Berhad

The Al-Hadharah Boustead REIT has been
structured to be able to distribute 98% of its
earnings which is expected to be paid out for the
first three financial years and projects to declare a
dividend distribution of 7.38 sen.
What makes the Al-Hadharah Boustead REIT
unique is the annual profit sharing of its net
incremental income based on a formula pegged to
crude palm oil and fresh fruit bunches prices. This
profit sharing arrangement is the first of its kind in
the REIT market and will benefit both Boustead and
the unit holders.
With our well established and proven track record
in the plantation sector, the REIT will certainly
provide investors an attractive investment
opportunity, spearheaded by an organisation that
has strong operating cashflows complemented with
a professional management team.
Your Group as an investor in the REIT sees this as
an attractive investment opportunity. Encouraged by
the exceptional results from our REIT exercise, we
are proposing a bonus dividend of 5% which
further reinforces our commitment of delivering
returns to shareholders.
OUTLOOK
We ended 2006 on a brighter note, than when we
started it and solely for this reason we enter 2007
rejuvenated with new prospects and healthier profit
contribution Group wide.
Our Plantation Division is concerted in its approach
to ensure its profitability. Aided by external factors
such as the mandatory labelling for food containing
trans-fatty acids and the European Union’s aversion
to genetically modified organisms as well as the
expected El Nino, we are bullish CPO prices will
trade in the range of RM1,800 to RM2,000.
Our Property Division is also expected to improve
its contribution to the Group as our developments
are likely to increase in value and yield. This will be
compounded by the fact that consumer confidence
levels are expected to be in tandem with the
Government’s efforts to improve the nation’s
economy.
As for the Trading Division, we are ready for the
growth we have invested into this Division,
specifically in the downstream petroleum retail
business. The Finance and Investment, along with
Manufacturing and Services Divisions are expected
to have a sizeable impact, particularly from the
perspective of our investments in the maritime,
pharmaceutical and education sectors.
We are committed to continue our reassessment
efforts when and where necessary to improve
profitability from each of our operating units. I
assure you, our valued shareholder, it is in our best
interest to drive efficiency and performance in order
to derive yield, profitability and shareholder value.
The last few years have seen these improvements
and in the coming year we do not intend to rest on
our laurels. We will continue to deliver.
To this end, it gives me great pleasure to present to
you our review of operations by Divisions. I trust
you will find this detailed review informative and
enlightening.
TAN SRI DATO’ LODIN WOK KAMARUDDIN
Group Managing Director
1 March 2007
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